What are the grounds for hardship?

davidgmmafan

I know there are no hard and fast rules but would there be any scope for having past charges refunded if you were in hardship at the time?

Or does it only matter what is the case now?

I am concerned about this in relation to one particular case which is personal to me as well as in general. Any feedback welcome.

natweststaffmember

Read the lending code section 9.

Premier_2

natweststaffmember wrote: »

Read the lending code section 9.

Very good advice

Especially since the first term states:

137. ...there is an onus on customers to try to help themselves,...

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

davidgmmafan

I'll read after equipping myself with a brew.

Minor point I've just noticed

"When providing customers with information, before a contract is entered into, about a current account offering an
overdraft facility, subscribers should include clear, fair and not misleading information outlining the availability of the
overdraft, including whether there are qualifying criteria for accessing the overdraft."

If you were feeling pedantic you could argue that virtually all passed info provided WAS misleading since they changed thier T & C's. Off topic anyhow...

Premier_2

davidgmmafan wrote: »

...If you were feeling pedantic you could argue that virtually all passed info provided WAS misleading since they changed thier T & C's. Off topic anyhow...

That would probaby depend on whether or not the T&Cs included on what basis they could be varied or ended. Most, if not all, do

oscar52

Premier wrote: »

Very good advice

Especially since the first term states:

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Does that section also not state that the "...first step when a subscriber becomes aware of a customer's financial difficultiesshould be to contact the customer to discuss..."

How many posters on these forums have been contacted by their banks regards the charges incurred on their accounts - ie not enough money to clear bills - directly pointing to financial difficulty.

natweststaffmember

Premier wrote: »

Very good advice

Especially since the first term states:

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

That is the key to it. The onus is on the customer to help themselves ie speak to priority creditors to see if they can indeed help. Having spoken and been in contact with various mortgage providers, many of them can indeed look at trying to help customers. In fact, I am minded to say building societies are probably better than the major high street banks in this regards. Furthermore, Utility companies have hardship funds which may or may not apply to those in financial hardship, and they are willing to work with customers in financial difficulties. If all this can be shown to the bank and that the period in which hardship was at its worst then the bank may refund charges for that period and/or offer to suspend charges for a period of 3 months to allow some breathing space. That was mostly the jist of the FSA waiver on bank charges in that their definition of hardship is IDENTICAL to the lending code.

natweststaffmember

davidgmmafan wrote: »

I'll read after equipping myself with a brew.

Minor point I've just noticed

"When providing customers with information, before a contract is entered into, about a current account offering an
overdraft facility, subscribers should include clear, fair and not misleading information outlining the availability of the
overdraft, including whether there are qualifying criteria for accessing the overdraft."

If you were feeling pedantic you could argue that virtually all passed info provided WAS misleading since they changed thier T & C's. Off topic anyhow...

To be fair to the banks'(rarity for me to say, perhaps) the guidelines came into force in November 2009 so any historical references are irrelevant.

natweststaffmember

As Oscar has said, the full quote is this:

"Although there is an onus on customers to try to help themselves, the first step, when a subscriber becomes aware of a customer’s financial difficulties, should be to try to contact the customer to discuss the matter."

I would say that this part is questionable with regards to whether the bank does contact them and whether they are in line with BCOBS treating customers sympathetically when they are demanding payments for overdrafts rather than discussing it as to whether they are in financial hardship

Premier_2

oscar52 wrote: »

Does that section also not state that the "...first step when a subscriber becomes aware of a customer's financial difficultiesshould be to contact the customer to discuss..."

Yes it does, as anyone who elects to click the link I provided can clearly see

oscar52 wrote: »

How many posters on these forums have been contacted by their banks regards the charges incurred on their accounts - ie not enough money to clear bills - directly pointing to financial difficulty.

I don't know, but would not necessarily agree that each and every charge a bank makes for a customer going into an unauthorised OD situation necessarily implies financial difficulty.

Read the link further, and it explains what financial hardship is and gives some examples of what the subscriber should look out for ... simply applying a bank charge is not one of them.

However, in answer to your particular question over how many are contacted by the bank, I don't know, but suspect its probably a similar number who have helped themselves ... just going by what people have posted

natweststaffmember

cheaky git, premier on the last comment